IAC quarterly revenue beats on Match, ANGI Homeservices strength

Reuters Staff

3 Min Read

(Reuters) - IAC/InterActiveCorp (IAC.O) reported a first-quarter revenue on Wednesday that beat estimates, driven by strong growth across all its businesses, including Tinder-owner Match Group and ANGI Homeservices.

IAC’s shares were up about 1.6 percent at $141.00 in extended trading.

First-quarter results were helped by robust growth in its Match Group unit as it benefited from more subscribers to its dating services. IAC owns more than 80 percent of Match Group.

The unit, which owns numerous online dating services, reported results on Tuesday that beat estimates and said Facebook’s dating tool would not hurt Tinder.

Earlier this month, Facebook said it was developing a dating feature for its 2.2 billion monthly users. Following the announcement, IAC and Match Group lost about $5 billion in combined market value.

“Tinder released a genie from the bottle and neither Facebook’s launch of a new profile page for single people nor anything else is going to put that genie back in,” IAC’s Chief Executive Officer Joey Levin said in a letter to shareholders.

When asked if IAC plans to invest more in its dating businesses following Facebook’s announcement, Levin told Reuters there were no specific investments tied to that.

Revenue from ANGI Homservices ANGI.O rose 69 percent to $255.3 million in the reported quarter, beating analysts’ estimate of about $252.2 million, according to Thomson Reuters I/B/E/S. The unit accounted for a quarter of IAC’s total revenue.

IAC created ANGI by merging its digital home services marketplace business with consumer review website operator Angie’s List that it bought last year.

IAC has also been ramping up its efforts to expand its presence in the rapidly growing video market through Vimeo, which offers cloud-based video hosting, editing and sharing tools to individuals and business customers.

Total subcribers for Vimeo rose 13 percent to 901,000 in the first quarter.

IAC’s net income more than doubled to $71.1 million, or 71 cents per share, in the quarter ended March 31, from $26.2 million, or 29 cents per share, a year earlier.

Total revenue rose about 31 percent to $995.1 million, topping analysts’ average estimate of $934.7 million.

Reporting by Pushkala Aripaka and Laharee Chatterjee in Bengaluru; Editing by Shounak Dasgupta